Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have my HP agreement and it does not state a mileage charge anywhere in it, Motonov are saying it is in their Terms and conditions which weren't with the HP agreement. They have said its their terms and conditions and they can always send me a copy.

It is definitely not in the HP agreement terms which i signed, I have not signed their terms and conditions.

If theses terms were not with the agreement when it was signed they are not enforceable(section 61(b) CCA.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Are you 100% sure you were not supplied with a copy of the T&C's at the time of taking out the agreement? Are you able to post up a redacted copy of what you were given so we can see it?

Thanks.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Yes I think you need to have a look at your agreement. If you do not have it you can request one under section 79 of the Consumer credit act, the request will cost you £1 and they should respond within 14 days.

I have my HP agreement and it does not state a mileage charge anywhere in it, Motonov are saying it is in their Terms and conditions which weren't with the HP agreement. They have said its their terms and conditions and they can always send me a copy.

It is definitely not in the HP agreement terms which i signed, I have not signed their terms and conditions.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Yes I think you need to have a look at your agreement. If you do not have it you can request one under section 79 of the Consumer credit act, the request will cost you £1 and they should respond within 14 days.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I have had the car since Dec 2010 and done 77k miles

This would average just over 2265 miles a month, or if you say an 'normal' average is 12000 per year, you would have covered 34000, so you are 43000 miles over the 'normal' average. At 15p per mile, this would cost you £6450.

I think you need to look at T&C's of your contract carefully and weigh up what this could potentially cost you. IMO they may have a strong argument that this is beyond 'reasonable' as it is more than double the normal average. However, also IMO, I think they would find it hard to justify their mileage charge (except you agreed to it in signing the agreement) - as the car is unlikely to be worth that much money now. Thus you get into negotiations.

You understand they cannot stop you VT'ing, whatever the case, and that any excess charges could go into a Debt Managment Plan to be paid over a period of time, especially if you have other debts. If your credit record is good, then you may not want this against you. You are then left with three options, don't VT; VT and pay what they ask or VT and negotiate over the mileage charge.

Beyond pointing out your options, I don't know what more we can do to help, but do post up if you think we can help. :beagle:

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

How long have you owned the car?

How many miles have you covered in it during that time?

We'll have some idea about the magnitude of this issue then.

I have had the car since Dec 2010 and done 77k miles

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

I know i can do the VT but what i dont want to do is end up with them asking for thousands of pounds for excess mileage after and them taking me to court for it.

I think what you are looking for is something within the legislature that prevents them making an access mileage charge, I am afraid there is nothing. It is purely down to the contract, as said a court would probably consider 12k a year as "reasonable care", so then you are arguing enforceablity of the amount of access charge.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

How long have you owned the car?

How many miles have you covered in it during that time?

We'll have some idea about the magnitude of this issue then.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Labman is correct the CCA only says that "reasonable care" must have been taken of the goods. The industry standard annual millage is between 10 and 12K.

You can argue that the charge is excessive and an unfair term under the UTCC regulations. Motorbility for instance charge 5p per mile, at the end of the day they have to be able to enforce the charge, so perhaps a degree of horse trading may be in order. Whatever the situation they cannot halt the VT, any extra charges will have to be invoiced after the termination is completed.

I know i can do the VT but what i dont want to do is end up with them asking for thousands of pounds for excess mileage after and them taking me to court for it.

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Labman is correct the CCA only says that "reasonable care" must have been taken of the goods. The industry standard annual millage is between 10 and 12K.

You can argue that the charge is excessive and an unfair term under the UTCC regulations. Motorbility for instance charge 5p per mile, at the end of the day they have to be able to enforce the charge, so perhaps a degree of horse trading may be in order. Whatever the situation they cannot halt the VT, any extra charges will have to be invoiced after the termination is completed.

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Thanks for that. It is a straightforward HP agreement paying a set amount per month then the car would be mine. There is no mention of mileage allowance and it has termination rights after half paid which i have done already. Carlyle finance (Motonovo) are saying in their terms and conditions i was only allowed to drive 12000 miles per year which i have gone over and they want 15p a mile.
I have rung the garage i bought the car from and they have no idea about a mileage allowance on the HP agreement.
If i VT the car could i end up with a bill for excess mileage?

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

If you did not commit to doing an average of say 10000 miles per year, as stated in some types of agreement, usually I think Contract Hire, then they can't. If it was a 'normal' car purchase HP agreement where you pay £xxx.xx per month and after 36 months it's your car, there is no provision for restricting mileage.

VT does allow for "Fair wear and tear," so I guess it could be argued if you have a two year old car with 90000 miles on the clock, this is not fair wear and tear.

If that doesn't answer your question, perhaps putting the situation into a more precise context for us would be helpful. :beagle:

[djprance]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Can anyone tell me if the Finance company can in enforce excess mileage charges if you hand the car back with a VT ?

Does anyone know if a finance company can try and add excess mileage to a HP agreement when i try and VT the vehicle. They are claiming it is in their Terms and conditions but i was never shown this and the original garage i bought the car from have said they have no idea about it.

[alastairweller]

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

Thanks again.

I've already written to them (last Monday 7th) giving 14 days and in response they sent this pack out. I agree that their wording seems to suggest that they are the ones issuing the termination.

I'll post back with how I get on.

Al

Re: Voluntary Termination of a Hire purchase or conditional loan under the CCA 1974

You are terminating the agreement (may already have terminated the agreement?) which is not what the letter states. If terminated, state vehicle is ready for immediate collection (make sure you've photographed with that day's paper for condition), and the address from which you want it collected, with contact details so you're there.

Personally I wouldn't sign it. You are in control of this, not them. If vehicle is available immediately, it's reasonable to expect them to collect it with 14 calendar days or you will charge storage at £x.xx per day (they won't agree to this, but it feels good!)